Paramount to Initiate Mass Layoffs Next Week
Paramount is set to initiate significant layoffs under the management of new owner David Ellison. Reports indicate that between 2,000 and 3,000 employees will be let go in the United States to meet a $2 billion cost-cutting goal.
Job Cuts Overview
The decision to lay off staff has been characterized by Todd Spangler of Variety as “a broad across-the-board culling.” Following this move, CBS Sports may also see a series of layoffs. Last year, Paramount employed approximately 18,600 full-time and part-time employees worldwide. This indicates a planned reduction of about 10-15% of the workforce.
Background on Layoffs
- Earlier in the summer, Paramount laid off 3.5% of its domestic workforce.
- The layoffs are anticipated to commence in the week of October 27.
These cost-cutting measures come shortly after Ellison’s takeover, highlighting a strategic shift under new ownership. Ellison, known for his ties to the Oracle fortune, recently made headlines with a $60 billion bid for Warner Bros. Discovery, aiming to enhance Paramount’s position, particularly in live sports. Although Warner Bros. Discovery has reportedly declined this offer, Ellison remains focused on various acquisition strategies.
Impact on CBS Sports
As Paramount conducts these layoffs, the effects on CBS Sports remain uncertain. The company recently attracted attention by securing UFC broadcast rights for $1.1 billion annually. This acquisition reflects the new management’s commitment to the sports division even amid potential staff reductions.
The upcoming layoffs highlight a transformative period for Paramount as it navigates ownership changes and strategic realignments while striving to strengthen its market presence.
